The State Government has decided to provide an additional capital investment subsidy of five per cent up to Rs 20 lakh in plant and machinery to set up plants in eight focus MSME sectors in the backward districts of the state.
The cabinet presided over by Chief Minister Naveen Patnaik approved the Odisha MSME development policy, 2022 which will replace the existing Odisha MSME development policy, 2016.
MSMEs in the eight focus sectors include automobile and auto components, plastics and polymers, steel and stainless steel, defence equipment, aluminium, pharmaceuticals, medical equipment and apparel and textile, will be encouraged in Kalahandi, Nuapada, Balangir, Subarnapur, Koraput, Nabarangpur, Rayagada, Malkangiri, Kandhamal, Gajapati and Mayurbhanj as per the new policy.
The enterprises will have to be set up in designated IDCO industrial estates or industrial areas along the Biju Express Highway Corridor of these districts. The upper limit of the capital investment subsidy has been enhanced to 25 percent, from Rs 1 to Rs 2 cr, of plant and machinery for expansion, modernisation and diversification of existing units.
Similarly, the upper limit of capital investment subsidy for new and existing enterprises owned by SC, ST, persons with disabilities, women and technical degree/diploma holder entrepreneurs has been enhanced.
Besides, new and existing anchor enterprises taking up expansion, modernisation and diversification will be eligible for capital investment subsidy at 30 percent of investment made in plant and machinery subject to a maximum limit of Rs 4 cr. Moreover, there will be a subsidy of five per cent of the capital investment made for adopting non-polluting measures in technical civil works and plant and machinery to help in the promotion of green industries.
The cabinet also approved the tender for the construction of an in-stream storage structure across river Mahanadi at Choudhury Gada in Jagatsinghpur district and Paika river at Tikhiri in Kendrapara district to create large water bodies within river embankments without displacement of people. The project is estimated to cost Rs 348.09 cr and is planned to be completed in 36 months.
This storage structure will enhance the water availability and will fulfil the drinking and domestic requirement of the people of 89 villages of Kujanga block, Paradip municipality of Jagatsingpur district and Marshaghai, Mahakalapada blocks of Kendrapara district.
The government also approved the provision of Rs 1,142.24 cr for four years under the ‘development of potato, vegetable and spices’ scheme with the involvement of women self-help groups and farmer producer organisations. The scheme will provide financial assistance to farmers to make the state self-sufficient in vegetable production.
